Crude logistics experts target Permian with $400M in new capital

Mike Prince knows the nuts and bolts of the midstream oil business. After working in all aspects of the crude asset business and leading business development teams initiating more than $2 billion in crude takeaway and storage projects, Prince will now lead his own operation. Through a $400 million capital commitment from EnCap Flatrock Midstream, Prince and his team of former Sunoco Logistics Partners LP (now Energy Transfer Partners LP), have established Lotus Midstream LLC. Initially, Lotus will focus on providing Permian Basin oil producers with gathering, takeaway and storage options.

“We’re going to continue to concentrate on the areas we know best and look at how to leverage our skill set and successful track record to benefit our customers. Our team has a thorough understanding of the crude oil value chain,” Prince said. While initially focusing on the Permian, Lotus will also keep an eye on opportunities in the Midcontinent, Eagle Ford and Eagle bine.

According to Prince, competition in the midstream space may be high, but his newly formed management team will take a slightly different approach to its work. The team is guided by a listen-first approach with its producer clients. “In all of the deals we’ve done, very few are identical,” he said. “We try to understand what is important to each customer.”

Joining Prince is Emily Baker, CCO, and Jen Fontenot, COO. Greg King, managing partner at EnCap Flatrock Midstream, said the Lotus team is recognized in the crude oil logistics industry and have a great reputation in the producer community. “They understand that midstream success begins with upstream success and have a long-term plan that is focused on creating value for their customers,” King said.

Prince hopes to have a project completed within the next two years. Projects under consideration involve the development of midstream infrastructure to move crude or condensate from the wellhead to market. In addition to greenfield work, Prince said the company will also consider strategic acquisitions.

“Even though there is a lot of aggressive competition in the industry, we’ll be going about it in a different way,” he said.